Correction timing forex strategy

Strategy uses remarkably tight stop loss. Positions is either closed very soon at loss, or it moves to profit. Once it moves to profit, strategy starts to add aggressively to the winner. This limits the drawdown and really maximizes the results of correct trade entry. This is not just a theory. Strategy was tested on high quality historical data since 2003 confirming those results.

 At theforexkings.com, not only we reveal full strategy rules. We also provide you with free expert advisor working according to those results. This means that you can test and adjust his forex strategy according to your own needs. This also leaves a 1000+ profitable settings unused and available for other traders to take advantage of. Enjoy.

 

Used tools and forex indicators

 

Alligator (130,80,50). Alligator is fancy name for combination of moving averages. Aligned properly they identify a trend with high degree of competency. They are also able to filter out end of a trend which is always tricky to trade with trend following forex strategies. Adjust periods of alligator to modify its sensitivity to trend and its corrections.

 

Relative strength index (7). Most popular forex oscillator does a good job in this forex strategy. It finds relatively high/low price in trend (correction opposing the trend) to enter the trade with tight stop loss.

 

Trailing stop loss (90 pips): Trailing stop is our only method of position liquidation. It is placed above the high/low of our entry signal candle and it is adjusted in the direction of profitable trade with each candle close.

 

Adding to the winner. If trade exists two conditions must be met for strategy to increase exposure. New trade must be covered by previous trailing stop.Overall account floating profit mus the larger than number of open trades*10 pips. (Do not use EA in more than one currency pair at the same time !!!!!).This ensures that we increase our leverage on winning trades only. However, those rules allow some exceptions that were included in test.

 

Max open trades:15 (can be adjusted to modify aggression of strategy)

 

Considering that strategy uses more than one trade opened at the same time, it is necessary to use lower leverage. All tests were performed for EURUSD 1H (tick) since 2003.

 

For the best results, trade with professional ECN/STP broker with MT4. If you can't trade with profit. Automatically copy the traders that are already profitable.

 

Forex strategy rules

 

SELL

 

Alligator lines aligned from slowest at the top to fastest at the bottom. All lines are untangled and clearly separated. Downtrend is in progress.

 

We will be looking for sell signal only.

RSI rising above 70 line. We enter short on candle close. Trailing stop is placed above its high + additional distance of 90 pips. All trades are liquidated only by trailing stop.

 

If trade exists, new trade can only be opened below the trailing stop. Also, current account floating profit from this forex strategy must be larger than number of opened trade*10 pips.

 

BUY

Alligator lines aligned from slowest at the bottom to fastest at the top. All lines are untangled and clearly separated. Uptrend is in progress.

We will be looking for buy signal only.

Buy signal: RSI falling below 30 line. We enter long on candle close. Trailing stop is placed below its low - additional distance of 90 pips. All trades are liquidated only by trailing stop.

 

If trade exists, new trade can only be opened above the trailing stop. Also, current account floating profit from this forex strategy must be larger than number of opened trade*10 pips.

Get MT4 expert advisor trading this forex strategy

For best results, use this forex strategy with one of our trusted forex brokers

(STP/ECN with MT4 bridge).

To win you must trade with broker on your side.

 

Disclaimer:  Expert advisor was tested for profitability on historical data. All screen shots provided are displaying real results of the test. However past data will never guarantee future success. Every expert advisor needs to be tested properly on demo account. LIVE use only on your own risk. Read full disclaimer. TheForexKings Team does not give any financial advice. TheForexKings does not take any responsibility for any user’s investments and investment decisions. All rights reserved. Strictly for personal use.

 

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THEFOREXKINGS

“Trading FOREX since 2006. Full time trader and web developer since 2013. My two biggest hobbies are trading and web development. In TheForexKings I managed to connect both of them. Even after 12 years of trading I still have the same passion for the market as at the beginning. The aspect I enjoy the most : development and testing of new ideas.” 

 

Only in 2016 - 2017 we have created more than 400 forex strategies. During this period we have also developed and published +200 MT4 Expert advisors based on those strategies. We are dedicated to provide you with viable and complete trading systems that have thrived in extensive historical testing. We want to give you complete and transparent trading solutions, that once mastered ,will set you financially free. We want to give you a fighting and winning chance in the market. ” 

—  Marian, Proprietor of TheForexkings.com